NEW YORK - The New York Federal Reserve Bank's president, William McDonough, said recent economic data show the U.S. inflation rate should gradually decrease.

"With the amount of capacity being used in relation to current growth of about 2.5% per year . . . the inflation rate should gradually be coming down," Mr. McDonough said.

He was addressing the Conference Board's annual business and financial outlook conference.

Consumer Confidence

Mr. McDonough characterized current levels of consumer confidence as "not particularly high."

"It is not surprising we have had a somewhat slower recovery," given the current levels of consumer confidence, he said. "We can't have a highly robust recovery with current levels of consumer confidence."

The Conference Board said its Consumer Confidence Index rose to 62.6 in September from a revised 59.3 in August.

Subscribe Now

Access to authoritative analysis and perspective and our data-driven report series.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.